The US dollar index is higher today, gaining ground as the greenback shows improvement against the euro. Even though the dollar is lower against some currencies, the greenback is showing overall strength, and that is pushing commodities like gold lower.
Greenback is showing solid strength today, thanks in large part to the relative recovery of the US economy. Against the euro, especially following the latest GDP data out of Germany and France, the dollar is heading higher. Euro weakness is providing a boost to the dollar index, and the dollar is also getting help from a weak yen.
US dollar is lower against the UK pound, though. The latest forecast from the BOE indicates that things might be picking up for the UK economy. The speculation over which central bank will ease stimulus measures first will likely play a role in determining the long term interplay between the pound and the dollar.
The higher dollar index is also weighing on gold prices, which have slipped below $ 1,400 an ounce. With the dollar so strong, commodities are lower.
At 15:32 GMT the US dollar index has climbed to 83.9000 from the open at 83.5780. EUR/USD is down to 1.2867 from the open at 1.2920. GBP/USD is up to 1.5222 from the open at 1.5208. USD/JPY is up to 102.4300 from the open at 102.4100.
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The South Korean won declined today on speculations that the weakness of the Japanese yen will prompt nation’s policy makers to intervene in an attempt to push the exchange rate lower.
Japan’s aggressive monetary policy worries other Asian nation and encourages them to intervene too. Bank of Korea Governor Kim Choong Soo said that it will have a ”big impact” on the South Korean economy. Policy makers surprised Forex market participants last week, unexpectedly cutting interest rates, and may do likewise again.
USD/KRW appreciated from 1,114.3950 to 1117.5950 as of 9:18 GMT today, rebounding from the daily low of 1,111.5000.
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Risk appetite, prompted by China’s trade surplus, is helping high beta currencies against the US dollar today. Greenback is down almost across the board as the situation for the global economy is expected to improve, and as risk assets fare in demand.
The latest news out of China found that exports are up 14.7 per cent from the period of a year earlier. The news is prompting risk appetite as many consider that the global economy might be on the road to recovery. With risk appetite returning, the US dollar is heading lower.
For the most part, the low-yielding US dollar is considered a safe haven. With the need for a safe haven diminishing, the dollar index is heading lower, and the greenback is down against most of its major counterparts, including the euro and the pound. Other high yielding currencies are also gaining ground against the US dollar. Higher gold prices are also weighing on the greenback.
At 16:05 GMT the dollar index is down to 81.82 from the open at 82.28. EUR/USD is also higher, heading up to 1.3179 from the open at 1..3078. GBP/USD is gaining ground rapidly as well, moving up to 1.5569 from the open at 1.5484. USD/JPY is a little lower, dropping to 98.8495 from the open at 99.0250.
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Yen is mostly lower today against its major counterparts following the latest release of BOJ minutes. Even though there are some concerns about the aggressive monetary easing policy being pursued by the central bank, most of the policymakers are expressing confidence in the bank’s decision.
Recently, the Bank of Japan announced a plan to double the monetary base in the next two years and aim for an inflation target of two per cent. The move is designed to end the deflation that has been prevalent in Japan and get the economy going.
However, with the release of the BOJ minutes from the last meeting, there is evidence that some board members have some misgivings. Concerns that banks might not lend with interest rates too low, as well as concerns about returns on pension funds and life insurance, were voiced.
Even with those worries, though, overall confidence in the plan hatched by Kuroda and Abe is high. As a result, it looks as though more yen weakness is on the way, and the performance of the Asian currency against its counterparts underscores that.
At 14:08 GMT USD/JPY is up to 97.8620 from the open at 97.3910. EUR/JPY is down to 128.1450 from the open at 128.3550. GBP/JPY is up to 152.1420 from the open at 151.4950.
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US dollar is heading lower against its major counterparts today, dropping as the latest economic news disappoints. It appears that the Fed won’t be letting up on its easing program anytime soon.
The latest US GDP reading came in at a +2.5 per cent today. However, this reading was a bit disappointing, since many economists had a higher forecast. With this disappointment, stocks headed lower — and so did the US dollar.
US dollar is heading down against its major counterparts, and the US dollar index has slipped into the red. The latest GDP reading indicates that the US economy is not quite where it should be. Many think that this news will prompt the Federal Reserve to keep its asset buying program in place. The result of continued quantitative easing is a weaker dollar.
Dollar index is slipping, although it managed to hold on to overall gains for awhile. Dollar is struggling especially against the Japanese yen, which is maintaining some strength on the BOJ’s decision not to expand its own easing program right now.
At 13:47 GMT the dollar index is down to 82.557 from the open at 82.815. EUR/USD is up to 1.3022 from the open at 1.3012. GBP/USD is up to 1.5484 from the open at 1.5433. USD/JPY is down to 98.1255 from the open at 99.2615.
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The Canadian dollar retreated today following yesterday’s gains as poor macroeconomic data from the United States and China drove commodity prices lower. The rally on the previous trading session was caused by good domestic fundamentals.
The eurozone confirmed that its economy is struggling and this continues to hurt global growth. China is less helpful to the world economy as its growth is also cooling. Such situation is not welcomed by commodity-related currencies, including the Canadian one.
Fundamentals in Canada itself looked better. Retail sales grew 0.8 percent in February. This is compared to the consensus forecast of 0.3 percent.
USD/CAD went up from 1.0254 to 1.0264 as of 4:02 GMT today. EUR/CAD rose from 1.3329 to 1.3342 and CAD/JPY slipped from 96.96 to 96.81.
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Earlier News About the Canadian Dollar:
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UK pound is mostly lower today, thanks in large part to economic weakness. Economic reports point to continued difficulties in the United Kingdom, and that is leading to expectations of more easing — and continued weakness for the pound.
Economic reports continue to threaten the British economy with a triple-dip recession. The Bank of England has been asked to do what it takes to stimulate the economy, and that might mean an increase in quantitative easing efforts down the road. Additionally, many are looking forward to the ”Carney trade,” when Bank of Canada head Mark Carney replaces Mervyn King as the head of the Bank of England this summer.
For now, the pound is mostly lower against its major counterparts. After seeing some gains earlier, sterling is down against the US dollar. Pound is also losing ground to the euro and to the Canadian dollar. The only major currency the pound is gaining against is the Japanese yen, which has its own issues with weakness as aggressive easing is expected at any time.
At 14:54 GMT GBP/USD is down to 1.5283 from the open at 1.5311. EUR/GBP is higher, rising to 0.8519 from the open at 0.8473. GBP/CAD is losing ground, falling to 1.5582 from the open at 1.5583. GBP/JPY is up to 151.0795 from the open at 150.3250.
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The latest private payroll report, for March, is in, and it shows the slowest job growth in five months. As a result, the US dollar is heading a little bit lower, thanks to the concerns about economic growth.
ADP released its private employment report earlier, and the report showed that only 158,000 private sector jobs were added in March, rather than the forecast of 200,000. After months of showing some progress, this latest slowdown in the growth of the labor market, is holding back the US dollar.
Later this week, the Bureau of Labor Statistics will release the nonfarm payrolls report. Since the recession, the two measures have shown some divergence. However, the numbers are starting to align a little more in recent months, and that means that many expect nonfarm payrolls to also show slower than expected growth.
For now, the economic news is slowing the US dollar, sending it down against many of its counterparts today. Greenback may not remain lower long-term, though, depending on what happens with other regions. Yen could weaken after the BOJ meeting, and eurozone is still struggling.
At 14:58 GMT EUR/USD is 1.2846 is up to 1.2819. GBP/USD is up to 1.5140 from the open at 1.5104. USD/JPY is down to 92.9070 from the open at 93.4390.
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Euro is a little lower today against the US dollar, thanks in part to record unemployment. However, the 17-nation currency isn’t down by as much as it could be, and it’s still holding its own against the UK pound.
In a situation that makes it clear that the eurozone economy is still experiencing problems, the latest unemployment numbers from Eurostat show that unemployment is at a record high. The revised figure for January is at 11.9 per cent, which is the highest its been since the formation of the eurozone in 1999.
The news is having some impact on the euro, with the 17-nation currency falling against the US dollar. Additionally, euro is down against the Japanese yen. The eurozone economy has been struggling quite a bit recently, and the troubles in the periphery aren’t helping matters at all.
However, against the UK pound, the euro is holding its own. The UK economy is, itself, in pretty rough shape with worries of a triple-dip recession continuing to cause problems for the sterling against its major counterparts.
At 13:50 GMT EUR/USD is lower, down to 1.2821 from the open at 1.2849. EUR/GBP is up to 0.8475 from the open at 0.8437. EUR/JPY is falling, dropping to 119.7495 from the open at 119.8105.
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US dollar is lower today after yesterday’s solid gains, and as lack of panic in Cyprus gives risk appetite a bit of a boost. There could still be strength for the US dollar coming later this year, though. For now, though, the US dollar index is lower.
Banks in Cyprus opened today, following a hiatus that lasted almost two weeks. The bank openings are accompanied by rules limiting cash withdrawals, however. Concerns that Cypriots would precipitate a run on the banks led to tighter controls prior to opening.
The controls, as well as the continued evidence that the ECB is willing to do almost anything to keep the euro intact, are helping keep the US dollar a little lower. Some profit taking on the dollar’s surge yesterday is also probably a factor. Better US economic data, pointing to continued (if somewhat weak) recovery, is also providing some reason for risk appetite.
With risk appetite making its cautious reappearance, and the euro consolidating, US dollar index is lower today. However, continued problems in the eurozone could lead to more dollar strength later in the year.
At 14:22 GMT the dollar index is down to 82.956 from the open at 83.202. EUR/USD is up to 1.2835 from the open at 1.2777. GBP/USD is up to 1.5166 from the open at 1.5128.
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